Page 17 - CB12_all pages
P. 17

~ Practicology ~





           represented online, how goods are packaged, handled and   example of a brand which we have grown substantially by
           labelled for each market. ‘By buying product stock and   becoming its sole authorised Amazon seller. Doing the
           selling it on marketplaces ourselves, we try to become the   same on Amazon’s European marketplaces is the next step
           brand’s only authorised seller on Amazon. We try to clean   in our partnership with the brand.’
           the ecosystem for the brand and work for a long-term,
           sustainable relationship.’

           Brands: ‘their own worst enemy’
           Vincent states that brands are often their own worst enemy.
           ‘Large brands in Europe often don’t actively deal with
           distribution problems and price erosion on Amazon. Typi-
           cally, these brands lack oversight of retailers that sell their
           products, and on which channels the products are sold. Of-
           fline retailers and online retailers selling through their own
           sites will also list a brand’s product on marketplaces to make
           extra sales, but they are not willing to invest in optimising
           the listings and brand content. Some brands will think that
           as long as the product is selling, then everything is fine.’

           However, this laissez-faire approach does not maximise
           sales over time. Vincent adds: ‘Pure Encapsulations is an























                  Breaking the downward price spiral and growing topline sales
                  ultimately benefits both the brand and Amazon. That is one of the
                  reasons why Amazon is actively encouraging quality third-party
                  sellers to use the platform, and being more selective about the
                  brands whose products Amazon will directly purchase through its
                  Vendor programme.

                  Jeff Bezos, Amazon’s CEO, has acknowledged its desire to work
                  with third-party sellers in order to offer end-customers the best
                  buying experience possible. ‘Amazon is transforming its business,   difficult for even the biggest brands to achieve that. We also have
                  dropping brands and insisting that they must instead become   global trade experience so can help take brands to new markets
                  third-party sellers,’ explains Vincent. ‘And that is where Pattern   and marketplaces. Put that in a mix, and we really can help a
                  and Practicology come in. We take the headache of selling on   business on a global level,’ concludes Vincent.
                  Amazon away from the brand.’

                  Changing from Amazon’s Vendor model to the Seller model is not
                  something that most brands are set up for on a global level. They
                  do not have the resources or team. ‘In our business, we have over
                  twenty disciplines that optimise our Amazon selling operation. It’s







                                                            17
   12   13   14   15   16   17   18   19   20   21   22